SK Supercharged Semis

Trading and Markets
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Hey everyone!

For those who’ve been following along with my updates on this system, I wanted to share a recent change I made to the hedge I’ve been using—and explain a bit about why I made it. While it’ll take a couple of days for the system description to reflect this update, I thought it was worth posting a heads-up in the meantime.

Originally, I was hedging the Semiconductor Index (SOXX) using the Nasdaq 100. This approach has served well historically, both in backtesting and my own trades. But over the past few weeks, I dug a little deeper into some recent data, comparing SOXX to various other indexes, and a clear pattern emerged: SOXX has significantly outperformed the DJIA (Dow Jones Industrial Average). Given this trend, I’m now planning to align the hedge to take advantage of this SOXX-DJIA relationship instead of the Nasdaq 100.

Thanks for tuning in, and as always, feel free to reach out with any questions or thoughts!

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:rotating_light: Quick Trading Strategy Update :rotating_light:

Alright, folks, gather 'round because this one’s a bit of a rollercoaster. Picture this: a strategy that pits SOXX against DIA in an epic battle of tech vs. industrials. Sounds fancy, right? Well, since this strategy’s inception, SOXX has been taking its sweet time underperforming the markets, including our good ol’ Dow. Yep, SOXX has been the underdog, like a turtle in a race against a caffeinated rabbit. :turtle::coffee:

Now, here’s the kicker: for the last 10+ years, SOXX has been that overachieving kid in class who always does better than the DIA—usually by a mile! So, why am I still hyped about this? Because history tends to repeat itself, and I’ve got my popcorn ready for SOXX’s next big comeback. :popcorn:

I’ve been riding this trading strategy with my own cash for years, and let me tell you, when it starts to heat up, it’s like cooking with gas—fast, exciting, and maybe a little dangerous if you’re not paying attention. :fire: The real beauty? Being hedged. By constantly squaring things up, it keeps those drawdowns in check. Not perfect, but hey, a little cushion never hurts, right?

Of course, sometimes this hedge likes to get cheeky and lose on both sides—like a double whammy of “oops.” But when the stars align? Oh, it can win on both sides, and that’s the magic moment when this thing starts feeling like a two-for-one happy hour deal. :tropical_drink::tropical_drink:

Now, I’m not asking anyone to throw money at this strategy yet. Nope, keep your wallets tucked away. But I am asking for your attention. Watch it, follow it, and maybe—just maybe—one day soon, I’ll be back here saying, “Told ya so!” (And yes, I’ll say it with a big LOL.) :sunglasses:

Stay tuned, my friends. This one’s cooking… eventually. :eyes:

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The Dow 30 is still outperforming Semis. The key is to stay balanced because when this goes, it goes. Be patient and you will be rewarded handsomely.